9th EBES Conference - Rome

January 11-13, 2013, Rome, Italy

NEW ECONOMIC THEORIES: EXPERIENCED (EXPERIENTIAL) MONOPOLIES Concept and theoretical thesis

1. INTRODUCTION
2. NOTION AND DIVISION OF EXPERIENCED MONOPOLIES
3. CAUSES OF COMING INTO BEING
3.1. State experienced monopolies
3.1.1. Complete state experienced monopolies
3.1.2. Incomplete state experienced monopolies
3.2.Market experienced monopolies
3.2.1. Complete market experienced monopolies
3.2.2. Incomplete market experienced monopolies
3.3. Individual experienced monopolies
3.3.1. Complete individual experienced monopolies
3.3.2. Incomplete individual experienced monopolies
4. CONCLUSION
BIBLIOGRAPHY

PhD Saa Zejak

September, 2012. year

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EXPERIENCED MONOPOLIES Concept and theoretical thesis

1.

INTRODUCTION

Monopolistic rent as one of the phenomena of industrial development ( in economic

sense) originated from deeper,than to say, understanding of mens first interest which
damaging others suffered. Sometimes that other was represented by one person,one
society or simply it was represented by nature which was being destroyed with mens
superior position and skillfull destroying of affluence which now has become rare
resources. For example by using his monopolistic position,the hunter destroyed shell in
order to get pearl out of it and in that way he was destroying usable but he was building
some other values. One of those values which have got many other capabilities in itself is
rent as well, no matter is it work,natural,monetary or some other,for example.
experienced rent.
By looking at person and his relation toward the surrounding, we could easily see that
the whole mans life is experienced experience of different monopolies.

2. CONCEPT AND DIVISION OF EXPERIENCED MONOPOLIES

In practice, monopolies very often mix, and each with its nature influence the welfare of
individual,family and further, the welfare of society and state. Economically, by their
analysis through the theories of experienced monopolies a lot of other cause and effect
phenomena is explained like: rent seeking,corruption,bribe,business unethics etc. As well
as one part of anomalies which is less or ,not at all, economically explainable like
mobbing, immorality,disregard for others, behavioural problems etc.

1.
Monopoly
behaviour

2.
Economic
anomalies

3. Social
anomalies
Picture num.1. Effects of monopoly behaviour

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The basic assumption of the experienced monopolies is that any formal or informal
society of humans could be rented in its dependant way while the size of that rent would
be expressed with the new,specific measure experience. The size of rent is proportional
to the size of experienced experience , where the ultimate aim is not an economic interest.
Such monopolies are called complete unlike the ones that are called incomplete in which
economic interest of monopolist overlaps with some other interest. That is the main
reason why this work analyses causes of their emergence in theoretical existing - basic
state and market monopoly, as well as in the proposed individual monopoly i.e.
monopoly of experienced societies.

Types of monopolies

State monopolies

Basic

Experienced

Market monopolies

Basic

Experienced

Individual monopolies

Basic

Experienced

Picture num.2. Types og experienced monopolies

3. CAUSES OF EXISTENCE

3.1. State experienced monopolies

By accepting the definition of the state as the organization that has a monopoly on
physical compulsion at the same time its imposed monopolies in all areas that are of

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importance to the public interest are accepted. State monopolies in its classic
interpretation imply a purely direct economic impact on the citizens, who are more or less
rented in accordance with their basic and other needs, preferences and purchasing power
and that rent could be expressed mostly monetarily or in some other way, comparable
way.
However, with the force of its apparatus, citizens are rented experientially.

Experienced
monopolies

Complete
experienced
monopolies

Incomplete experienced
monopolies

Picture num.3. Division of experiential monopolies

3.1.1. Complete state experiential monopolies

In all cases of complete state experiential monopolizing, deviation of the free will from
the requirements of the state of the citizens and foreign persons are possible and therefore
their experiential renting without economic objective is measured by: fear, intellectual
resistance, or some other emotion or action. Some of the identified examples in practice
are:
- Compliance with the prescribed way of behaviour that is not in accordance with the
traditional or some other previously accepted spirit.
This situation is particularly evident in those countries or regions where exist a strongly
expressed local culture, which during the time, or some other effect, tacitly or not, is
evaluated as: outdated, inflexible, uncivilized or in some way retrograde (in whole or
mostly - partly, by the essential requirements) and therefore performs its local or state
legislative correction with the aim to obtain the same pattern of behaviour on particular
territory - examples of Aborigines in Australia, Indian tribes in America etc.

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This compliance is getting international dimension, together with the efforts of

unification of general social values in formal or informal way, with different objectives
from the protection of human individual and social rights, to the environmental
protection and the target species of flora and fauna, wherever there is no direct economic
interest in its basis.
- Fear of the deviation of proposed way of behaviour and punishments that follow.
Rigorous national and supranational penal policy at all levels could be seen in the fact
that people who have experienced or transferred experience, expressed by the fear of
transgression, usually form closed communities isolated from the general social
movements and gradually they become second-class citizens (in the case of misuse of
state policy) or perform a passive resistance toward the state, which does not have to give
a long-term positive social effects.
Social rules although prescribed for everybody do not have to be (mostly or not)
respected by all. Inadequate response by the state: untimely, inadequate or undone,
especially if it is made in accordance with the normal practice, leads to stratification of
society on the non-economic basis (nation, religion, skin colour) where experiential
monopoly over the target group of citizens is done. Although this form of monopoly
leads to long-term economic divisions, its causation is in the root of uneconomic and, by
its origin, is reduced to this kind of monopoly.
- Creating of groups or media that are projecting the political psychology of the masses.
This type of local or state actions, especially in situations where the local majority
represents minority at the state level, is typical for the behaviour of non-democratic
systems, where as the logical consequences of these anomalies occur: forced assimilation,
virtual rights of assimilates , unrealistic political profile of the territory, creating of
powerful pressure group, etc. Media and group terror - which often operate
simultaneously, do not contribute to civil stability for the long term.
- The legal solutions related to the issues of marriage, family and minority groups.
These monopolizings, depending on their nature, can cause a great experiential renting large or small groups of people, depending on the inherited habits and customs that may
be the reasons of suffering and social upheaval, from the point of view of both the
individual and society as a whole. Therefore, in this problem international expert groups
and organizations are actively engaged. Situations in which the new rules are defined: the
establishment, maintenance and termination of marital and family relationships, as well
as the status of derivative or individual minority groups, undoubtedly carry a full-noncommercial renting.
- Other monopolizing - the way of destroying surplus of weapons, self willing politics
etc.

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Other monopolizing, which may have non-economic effects, but expressed social
consequences are different and difficult to be classified in the future way. Essentially the
most important thing is to carry out on their proposed examples of logical recognition in
practice i.e. state may destroy the surplus of weapons on the territory that is not suitable
in terms of political support for the government or in any other way, and therefore
destroying is done without any visible economic effects in relation to some other location
or way of destroying. In the same way they treat other, arbitrary policies in all areas,
which are undertaken without a specific economic target.
Especially the issue of experiential renting in public or political offices is complex. Just
as the endogenous corruption is connected with the mixed and private sectors so this way
of renting is characteristic for the employees in the state sector. Improvement or
degradation in service, political, ethnic and other pressures and suggestions, employment
policies etc. are all the conditions of complete experiential renting.
One of the characteristic monopolizing of this kind connected with policy, is that, for
example, during the distribution of electoral votes, the parties which do not enter into the
parliament, with the mechanisms of the electoral system, give their votes to the strongest
party. In this way, an individual or group, who are fighting against the government,
indirectly vote for it and thus suffer experiential monopolizing imposed by the state
electoral mechanisms.
3.1.2. Incomplete state experiential monopolies
In the cases of incomplete state experiential monopolizing, it is possible to experience
renting of citizens and foreign persons with indirect economic objectives, measured by
profit loss: taken away useful time, missed education, imposed political participation, the
unpreparedness for social crisis or for some other experiential way. Some of the
identified examples in practice are the following:
- Educational and employment policies.
These policies can enforce certain social groups at the expense of others, thereby for
example, their entry into the labour market and education is facilitated and thus
indirectly for the long term combined - uneconomical and such consequent economic
goals are generated such as regulations related to seasonal labour (especially for
foreigners) which allows influx of cheap labour force from abroad, which for the long
term leads to earnings decrease of domestic workers categories, price and quality of the
available types and levels of education which can go up to the fact that the whole one
population could be cut off from the education system and migrate to other countries
where prospects for a longer or shorter period are to get cheap labour in the targeted
areas. This is the way, together with the basic non economic objectives for example
discrimination in education and employment, directed against certain persons to realize
derived economic benefits.
- The long-term impact on public opinion in the service of economic policy.

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Public opinion is a critical factor that defines the socio-economic relations in one country.
Economic policy with all its daily and life relationships with individuals and groups can
be more regressive or progressive but that does not have to be recognized in the public.
Accordingly, individuals and groups define their actions and expectations which in nondemocratic systems could be disastrous on all matters of free civic life. If, for example,
state confiscate property because of the reasons of the communist equality or preventing
market economy principle because of religious, ethnic or other reasons earnings, if the
state is doing organized and violent public persuasion: by political schools, seminars,
media, institutional and personal contacts etc. the initial political bases are joined with
the hidden economic motives, and that is usually verified by majority only after
overthrow of the regime policies (large economic gap between the ideologues and
subordinates, dirty industries and not investing as a result of corruption, etc.).
- Suppression and the false showing of the crisis, transitional and other negative
economic effects.
This experiential monopolizing is directly related to the previous one and it is usually
support to the strategic objectives of a state or of the current government and it can come
into being for many reasons: the imaginary inter-regional equality in which the target
regions are ignored in practice (political, ethnic and religious reasons) to cover up their
own political mistakes with the means of the state apparatus. In all cases, there is the
empirical renting of individuals or groups to the degree of perceived inaction which is
reflected by further economic and other social problems.
- Other incomplete state experiential monopolizing: a form of military organization in the
country and others.
Form of military organization in the country is one of the most concrete sources of this
type of monopolizing. For example: the state in which the military service is obligation,
particularly in those where exceptions from service could not be done (by payment,
religious motives, etc.) citizens are rented directly by taking away their useful time and
the state is taking a long-term economic benefits through free or less paid army than the
one it would have by engaging professional soldiers, and all that to the extent of the
economic loss of the population measured by the unpaid market wages. No respect for
"conscientious objection" for example, the obvious example of experiential monopolizing
over an individual who has performed economic benefit for the state.
3.2. Market experienced monopolies

Market monopoly, as the main renters, by the rule are concealed or called differently by
those who create it. Their possible origins are the clerk, party and endogenous corruption
as well as indirect corporate association, which represent a complex economic issue,
especially competition policy. The market monopolists always want and usually succeed
to achieve the highest possible price for their products, with no visible competition and

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economic feasibility. Outwardly, buying their products is a matter of consumer culture

and purchasing power.
3.2.1. Complete market experienced monopolies

- Inability to purchase substitutes that the consumer prefers - taste, appearance, etc.

Market monopolizing in this case could be seen in the fact that one or more sellers
distribute their products in a way that simultaneously unable competition to occur on the
same market, regardless to whether they were previously existed on it or not. The
situation is particularly complex looking by the customer, if the products are not of
expected quality or inadequate in relation to the essential requirements. Even if the
products meet the essential requirements, inability to purchase substitutes that the
consumer prefers - taste, appearance, etc. represents an empirical market monopoly,
regardless to the price - which may be much lower in relation to the required product. In
other words, the consumer is forced to use product which he would not use in a situation
of full competition.
This situation can be supported by the state throughout some shares like "buy domestic".
In any case, it is essential that any distortion of competition has far greater consequences
than it might be seen at first. This monopoly is different from the primary market
monopoly because it does not provide goods of the same quality (such as electric
energy), the price range can be significantly lower (that does not allow extra profit) and
there is an open and significant support from the state
- Incompliance with the product characteristics with the requirements of the customers.

It represents classic behaviour of monopolists in relation to earnings for the long term,
with which certain products or product groups are given certain characteristics that are
disadvantaged in relation to those that are sold on developed markets. An obvious
example is the production and placing of technical goods e.g. mobile phone where the
phones that are designed for developed to developing countries have the technical
characteristics far below the same models that are sold on developed markets. In practice,
there are often some improved models, for example for the U.S., GDR, markets or even
on those markets mobiles are sold with significantly reduced quality (e.g. part of Chinese
production). Consumers are rented with sustained experience in the use of inferior
product.
- Disrespect of religious or ethnic customs in production or sales, etc.
This experiential monopolizing is directly related to the previous one and it is particularly
related to media and food products market. Specific requirements related to the level of
required censor or food preparing for religious purposes, are problems of the decade and

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even century, which usually in practice is not recognized and leads to complex and
conflicting situations, especially in areas where certain religious groups do not reflect the
majority of citizens so the overall policy of monopolists is amount to the requirements of
the majority. Individuals and groups are rented by avoiding required media, refusal of
information, poor nutrition etc.
3.2.2. Incomplete market experienced monopolies

- A package of related services that affect the use of the product.

This type of monopoly can be viewed in two ways: in situations when a consumer does
not want to purchase or receive certain product (e.g. general heating systems, instruments
potentially hazardous to health, etc.) but he is conditioned by a purchase or not, for the
sake of some other future conditions, or in situations when a consumer wants to buy or
receive a particular product but he does not want a set of services that is tied to its future
usage.
In both cases, the buyer is rented with the sustained experience (undesired, health,
discrimination) in terms of the current or future usage of the product, while the ultimate
goal of the seller is the certain economic benefit. When it comes to,for example, selective
incorporation of remote controllers for water and electricity, when on certain
neighborhoods or cities are imposed new: experimental or other trial systems - all this is
a sign of monopolizing under certain groups in society.
The problem is particularly pointed out in the selection of the sites for nuclear and other
potentially environmentally dangerous plants, which selection could be based on the basis
of incomplete non-economic parameters. Also the situations, in which companies conduct
emigration from a specific territory for the sake of human reasons and then cultivate or
exploit the particular territory, could be seen every day in all parts of the world,
especially in those who are rich in natural resources and are located on the lower level of
industrial development .
In developed systems, apparently free products are offered on the market usually for
certain categories of society who bind themselves to more and less visible services that
are important for the providers of the free products (or products with significant discounts
of the price). The range of these services varies from ,for example ,transfer of personal
income on a certain banks, to the exclusive servicing that contain service prices that are
significantly higher than the ones offered on the market, but their usage is the condition
for consumer to get a guarantee.
- Forcing of the consumer disunity.
Forcing of the consumer disunity is in the direct service of these monopolizings, since
any attempt of their recognition in practice may influence the political and economic
level. In situations where ones praise and others criticize specific products and systems

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(especially those who are most important for existence) it is easy to recognize that market
monopolies are not bound only to money.
- Other incomplete market experiential monopolizing
Inability to reclaim at some distant territories, target switching of purchases to the
neighbouring countries, judicial bias, the qualitative differences between the products in
the region, are examples which do not have to have its external economic dimension,
although it is inseparable from such actions on society.
Also, for instance in professional team sports, certain players may be discriminated in
relation to other because of bribes and other abuses by the responsible persons.
Discriminated sportsman is experientially rented by, for example, reserve of the team,
whereas the responsible person (s) with hidden economic motives explaines that by the
team and other reasons. Going further, this experiential monopolizing of sportsman is
joined with the purely economic - because his value decreases on the market for not
being part of the first team, but his backup.
The economy in the service of religion, for example, is one of the possible sources of
these monopolies, which gets a more professional and well-deserved media attention.
Under different kind of "blessing,the whole social groups can be organized on religious
farms, and the other "working places" without economic compensation, while their
employers bring to market products and services, achieving economic gains. Employed
believers are rented with fear, the future and other spiritual benefits while the actual
impact of their work is related to the use of free labour.

3.3. Individual experienced monopolies

Individual experiential monopolies are always in the focus of the public - because their
individual identifying and solving different types of positive impressions are acquired
that do not have to have(or usually do not) anything in common with the actual
developments in society. Their single solution, are usually performed under the auspices
of national, religious, national and corporate interests. Today, when there is the equal
media impression on the public to the case study also the problem of the masses is left,
and it is easy to conclude that this type of fingering is far cheaper and more reliable than
paying attention to collective problems. The individual and his/her universal law:
congenital or acquired, connection with others, are the subject of the development of the
thought of all the social sciences, so that individual experiential monopolies extend their
borders on the entire society, and further, they find a cause in religion gene, culture and
civilization - as their result.

3.3.1. Individual complete experienced monopolies

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- Influence of marital, family, ethnic, religious, lower-political and other circles which as
an aim do not have some already built economic interest.
For example, a spouse uses its monopoly position to impose his/her will to the partner,
parent to the child, spiritual father to believer, then cases of mobbing in situations where
any business interest is not achieved.
For example, amateur club player can be from various undeserved reasons discriminated
and can experientially suffer monopoly which is made against him (racial, ethnic,
religious, local and other reasons). In religious organizations, the person who is opposed
to a person or a particular religious activity, even to the completely separate individuals
or groups may suffer and that could be more or less appeared in public (e.g., cases of
child abuse, mentally ill, and others).
3.3.2. Individual incomplete experienced monopolies
- Appropriation of income of a family member, income of the members of religious,
ethnic or political community, mobbing as the way for achieving business interests etc, in
all cases where with that income realizes other income or expenses that directly or not
affect
the
welfare
of
the
one
from
which
they
are
taken.
From the standpoint of the individual, the most common political and religious reasons
that push him to suffer outside the morally and socially acceptable limits: contributions in
money and labour, business advertising, public display, and even fraud - all in the service
of "higher non-economic objectives" which political and religious leaders use in their
favour on a personal level.

4. CONCLUSION
This, in many ways a new concept of monopolistic behaviour observation provides a
more general overview of the socio-economic picture of society, ways of preventive and
repressive action through the legislative, judicial and executive regulations. In the same
way the primary monopolies are won by the antimonopolistic policy so democracy is the
basic antithesis of the experiential monopoly. In other words - the way of democratization
of a society is the way of the fight against experiential monopolizing.
Furthermore, empirical monopolies, recognized in all spheres of life are the ideal base for
the social, and then for all other conflicts, since they are apart from a number of
anomalies identified more than closely related to the concept of exploitation, which
usually finds its cause in the existence of material and other inequalities. It exists in a
situation where it meets three basic criteria: the inverse interdependent welfare principle,
exclusion principle - welfare depends on the exclusion of the exploited from access to the
certain resources or impacts, and the principle of exploitation, which is all part of the
theoretical presuppositions of the experiential monopoly.

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The way of struggle with economic unnatural passions, as well as with experiential
monopolies is the healing of modern man, his moral rebirth, not only external rules of
which he is still more skillful as far as his interest is more interesting

BIBLIOGRAPHY:
- Gary S. Becker / Teorija nadmetanja meu grupama koje vre pritisak radi postizanja
politikog uticaja / Economic Annals no 162, 2004.
- Mr Saa Zejak - Monopolska renta, Podgorica 2007.
- Thomas DiLorenzo / Mit o prirodnom monopolu /
- Miroslav Prokopijevi / Konstitucionalna Ekonomija / PRESS 2000.
- Prof. dr Nevenka R. Glievi / Razvoj i osnove savremene ekonomske misli /
Ekonomski fakultet - Podgorica 2004.
- Steven Hackett / Monopolistic Competition,Oligopoly,and Product Differentiation /
Humboldt State University / 2003.
- Kelley L. Ross ph.d. / Rent seeking, Public choice, and The Prisoners dilemma / 2002.
- Alan Dunne / Rent seeking and the social costs of monopoly / 2006.
- Leon Felkins / Rent seeking behaviour / 1997.
- Stephen Antony Baba / The impossibility of efficient Rent seeking /
- WEB sites:
www.entereurope.com
www.answers.com

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